Palm Valley Mall and Palm Central Building, owned by Palm Hills Development Company, have achieved sales of EGP 470m since the beginning of the booking and selling period in April.
Palm Valley Mall, located next to Palm Valley residential project, is underdevelopment. The company has achieved sales at Palm Valley Mall worth EGP 360m, selling at prices ranging between EGP 55,000-120,000 per square metre. The project is expected to be completed in 2019.
Palm Center, which is located next to the eighth phase of Palm Hills in October, has seen sales of 66% of its total area available for sale with a total sales of EGP 110m; with an average sales of 38,000 per square meter. The project is expected to be completed in 2018.
The developing company explained that these proposals come in line with the launch of the VGK project, which was launched in 2016, and achieved sales of EGP 266m. The company plans to deliver its business units during the current month, with an expected profit of EGP 120m.
A research paper issued by Beltone Financial Holding said that the revaluation of some of Palm Hills’ commercial spaces as developed areas, rather than as land plots, supports the company’s assets, raising raised its estimate of fair value per share to EGP 4.15.
Beltone highlighted the 6,000 feddans (25.2 million square metres) project, which is being negotiated between the company and the government, to develop the Palm Hills portfolio.
Prime Holding has recommended the purchase of Palm Hills shares and set a target price of EGP 4.49 per share. The investment bank Pharos Holding has also highlighted the importance of increasing the relative weight of the stock and set its fair value at EGP 3.47 per share.
Mohamed Maree, real estate analyst at Prime Holding, predicted that the company’s contractual sales by the end of 2017 would reach EGP 5.7bn.
He pointed out that the second and third quarter of this year could see slower sales growth due to the seasonal conditions of the holy month of Ramadan and the stagnant season of real estate. If the company is able to overcome these conditions, this year’s performance will be a record.
The company posted a profit growth of 101.4% during the first quarter of this year, recording a net profit of EGP 212.3m compared to EGP 105.4m for the same period last year.